LGT’s Insurance-Linked Strategies team (ILS) has won three mandates worth US$400 million from large European pension funds in the first half of 2013.
The mandates are structured as separate, regulated funds on LGT’s dedicated ILS platform in Luxembourg, and they focus on private insurance-linked investments, also known as collateralised reinsurance.
The institutions awarding the mandates include one of the largest Dutch pension fund managers whose mandate is to cover non-US risks only whereas the AXA Winterthur pension fund and the Swiss municipality pension plan that cover worldwide risks.
All of the three mandates have a primary allocation to collateralised reinsurance along with allocations to insurance-linked securities and catastrophe bonds that will allow them to take advantage of attractive market opportunities and manage liquidity.
The ILS team has grown its asset base by 30% in the first year following LGT’s acquisition of the team from Clariden Leu.
Steven Kaufmann, head of insurance-linked investments allocation at AXA Winterthur Pension Fund, said: “We have followed the ILS space for a long time and have been convinced by the uncorrelated returns in the insurance-linked investments sector, as well as the long track record, transparency, and high quality of the LGT team, especially regarding collateralised reinsurance.”
Michael Stahel, partner and portfolio manager of LGT ILS, said: “We are extremely pleased that AXA Winterthur selected us for its allocation to this exciting asset class, which will help to further diversify their asset base.”
